Move is Part of Longer-Term Switch Toward Investment in Developing Economies

China became the world’s top destination for foreign direct investment in 2014, edging the U.S. out of that position for the first time since 2003, according to figures released Thursday by the United Nations Conference on Trade and Development.

Foreign businesses invested $127.6 billion in China, up from $123.9 billion in 2013, while their investments in the U.S. fell to $86 billion from $230.8 billion, Unctad said. The decline...